Government of India Volume I: Analysis and Recommendations

TRANSITION ISSUES
service providers that are functionally the same as other financial service providers created
through regulatory authorisation. Such financial service providers will have to seek
authorisation just like other financial service providers, and will be subjected to the same
regulatory framework. For example, certain banks and insurance companies in India enjoy
a statutory status, which should be replaced by a regulatory authorisation to do these
businesses.
From existing legislations affecting India’s financial system that are not to be repealed,
most will require amendments. Some will have to be substantially amended,
and others will require only minor amendments.
Following is a list of legislations to be repealed:
1. The Securities Contracts (Regulation) Act, 1956
2. The Securities and Exchange Board of India Act, 1992
3. The Depositories Act, 1996
4. The Public Debt Act, 1944
5. The Government Securities Act, 2006
6. The Reserve Bank of India Act, 1934
7. The Insurance Act, 1938
8. The Banking Regulation Act, 1949
9. The Forward Contracts (Regulation) Act, 1952
10. The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
11. The Deposit Insurance and Credit Guarantee Corporation Act, 1961
12. The Foreign Exchange Management Act, 1999
13. The Insurance Regulatory and Development Authority Act, 1999
14. The Payment and Settlement Systems Act, 2007
15. The Acts establishing bodies corporate involved in the financial sector (e.g. The
State Bank of India Act, 1955 and The Life Insurance Corporation Act, 1956)
140 FINANCIAL SECTOR LEGISLATIVE REFORMS COMMISSION